New edge proposed: directional_bias_continuation_break — E8 Intelligence Research
Year: 2026
Type: preprint
Abstract: { "name": "directional_bias_continuation_break", "source": "Linda Raschke's '3-Bar Play' variant from 'Street Smarts'", "type": "filter_flag", "rule": "Enter only when the current bar closes above the high of the prior two bars after a 20-period SMA slope has been positive for at least 5 consecutive bars (for longs) or closes below the low of the prior two bars after a 20-period SMA slope has been negative for at least 5 consecutive bars (for shorts).", "pseudocode": "if (SMA20_slope > 0 for last 5 bars) and (close > max(high[-1], high[-2])) then long_flag = true; if (SMA20_slope < 0 for last 5 bars) and (close < min(low[-1], low[-2])) then short_flag = true; apply as entry filter.", "why_it_works": "Combines trend confirmation via sustained SMA slope direction with a tight breakout of recent range, filtering fakeouts by requiring both established momentum and structural breach." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com
Author: Caldin, Andrew Stewart
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7203882603
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